The proposed bill establishes the New Mexico Property Insurance Program Association Board to oversee the FAIR Plan Act, which aims to provide property and commercial property insurance to individuals unable to secure coverage in the regular market. The bill introduces new definitions related to the FAIR Plan, outlines the composition and responsibilities of the board, and sets forth requirements for insurance policies under the FAIR Plan. Key provisions include the establishment of premium rates that are fair and actuarially sound, the creation of a plan of operation that details coverage limits and underwriting standards, and the authority for the board to collect fees from member insurers to maintain program solvency.

Additionally, the bill amends existing sections of the FAIR Plan Act to clarify the roles of the superintendent and the board in managing the FAIR Plan, including the ability to suspend or revoke the authority of member insurers that fail to comply with assessments or operational plans. It also mandates annual reporting requirements for the board to ensure transparency regarding the financial condition of the FAIR Plan and the claims made under it. An appropriation of $50 million is allocated for the administration of the FAIR Plan Act and related fire mitigation programs, with an emergency clause for immediate enactment.

Statutes affected:
introduced version: 59A-29-2, 59A-29-4, 59A-29-5, 59A-29-9